A look at investment real estate, the residential edition:
A growing number of property owners are concerned with income generation potential. Popular revenue-generating methods in real estate include purchasing property that will provide rental income and “Flipping” (residential redevelopment). Today we will cover properties for rental income.
One of the most common questions for persons on the investment property hunt is “What are the best locations for purchase?”. This question is subjective and unique to each buyer based on budget and proximity to amenities. According to Mr. Andrew Issa, broker at Coldwell Banker Jamaica Realty, the key to pinpointing ideal investment properties, is to identify areas that have fairly high rental rates and are low on traffic.
A popular option for investment property hunters is purchasing a unit in a new residential development. If you are considering a new development, work out the per sq ft cost for a unit and take available amenities into consideration. Ideally, the astute investor is looking for property that will guarantee a 5 – 7% ROI (Return on Investment). Also, make sure to include insurance and maintenance costs when calculating your ROI.
We asked a few of our agents to offer residential listings that were in prime locations and considered sound investment options, here are a some of the options they recommended:
1. Rutland Drive, Beverly Hills, Kingston 6 MLS #11275
9bed 9bath home, 3 storeys, balconies, auto-gate, helper’s quarters +more.
Potential ROI – 8%
Agent: Gillian Black (876) 489-5561
2. Kensington Crescent, Kingston 5 MLS #11766
1bed 1bath apt, high demand area.
Potential ROI – 6%
Agent: Francine Haughton (876) 995-7031
3. Kingston 6 MLS #11616
Lovely 8 bedroom 2 storey home, including 2bed flat.
Potential ROI – 7%
Agent: Carmen Smith (876) 391-0754
4. St. James MLS #12715
3bed 2bath townhouse in small, private, central complex.
Potential ROI – 5%
Agent: Sarah Harris-Ottey (876) 277-3320
As with any important purchase, having a professional on your side is extremely important to minimise risk and maximise returns. Speak to an experienced Coldwell Banker agent today to help you identify properties for your real estate portfolio.